JabairuStork, welcome back, I hope your forum absence wasn't health related.Since the profile of him in Financial Enginnering News (typically not good) many of Aaron Brown's comments there on correlation have inspired some useful discussions in Technical Forum. Search on "correlation" and "Aaron."The Kelly Criterion extended to non-normal distributions/payoff tables has prompted some interesting views. Sadly, this thread topic is then fragmented all over the place.The television show with Donald Trump, contrasted with his back-stage financing problems, has prompted some larfs. Just about the best divide of consciousness I have ever seen between those in QuantFin and the insatiable gaping maw of the public's preception of 'finance' 'wealth' and 'success.'Wait 'til New York wakes up on Monday and you'll probably (no pun intended) have some other good pointers from the Manhatten crowd.Again, welcome back.

Thanks for the pointers, James, much appreciated. Luckily, I am in good health (physically at least, not sure about mentally.)

"Luckily, I am in good health (physically at least, not sure about mentally.)"After your 'brush with the' [unnamed, unknowable] I was a little concerned. Thanks for the update.Mentally, can't help you. And sadly, we are all in a field that tolerates cranks, geniuses, and the mentally ill at about the same p-spaces. Almost like art. Ironic the way that happens.But if you need a breath of fresh air, come to Paris in the Spring before the tourists arrive. I'll be sure to guide you on a pleasant time.Again, Welcome back. Now, show us what your little grey cells have been thinking about since we last heard from you. Me, it has been the curvature of equity volatility significance (coefficients) across the capital structure of a corporation (capstruct arbitrage). Progress? Hmmmm, no corporate jet yet.Off to Londres. - jnw

Yeah, it seems like every day I hear about more cats trying to get in on the capstruct arb game. This is supposedly one of the drivers of the market for recovery swaps. Strangely, the clamor for "equity default swaps" seems to have subsided, although I'm sure they will come back again in some form.Well, after all, who wouldn't want to buy extrememly cheap vol?These days, I am trying to figure out a way to operate within what I consider the restrictive risk limits of the institution where I work. I am basically thinking about ways to take risks that are not well understood (at least not by the regulators and internal compliance dept) and make them appear to not exist. Contrary to what I believed when I was younger, the model is just the beginning.

QuoteOriginally posted by: JabairuStorkLuckily, I am in good health (physically at least, not sure about mentally.)Let's find out. Question #1. Do you still believe in storks?